While Oil Prices Have Fallen From Their Peak, Here's Why They Could Rise Again in the Future.
The agreement to end the Middle East conflict has pushed oil prices lower, but that could be a temporary reprieve.
While Oil Prices Have Fallen From Their Peak, Here's Why They Could Rise Again in the Future.
Overview
Before the geopolitical conflict in the Middle East broke out, Brent crude was trading in the $60 range. As fighting flared, news from the conflict pushed oil up to just over $130 a barrel. Today, as the two sides appear to have reached a tentative agreement to end the conflict, oil is trading around $80.
It seems logical to expect oil to return to $60 in short order, assuming the agreement to end the conflict holds. But two of the world's largest energy companies, ExxonMobil (NYSE: XOM) and Chevron (NYSE: CVX), have warned that industry fundamentals are weaker than Wall Street realizes. That could mean higher, not lower, prices once fundamentals start to drive energy prices.
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Originally published at www.fool.com.
